March 2, 2016
Despite a weaker economy—and a stock market in a near-freefall—China said over the weekend it wouldn't devalue the yuan to cushion the economic blow.
What they have done, however, is cut the required reserve ratio—meaning the amount of cash the nation’s lenders must lock away—dropping it by 0.5 percentage points as of March 1.
Altogether, the move is expected to inject about 685 billion yuan ($105B) into the financial system, Bloomberg reported. In today's Video Of The Day, the Bloomberg Markets team breaks down the policy—and if it's a game changer for the economy.
